TutoringZone co-founder files for personal bankruptcy

Published: Tuesday, December 18, 2012 at 11:15 a.m.

Last Modified: Tuesday, December 18, 2012 at 11:15 a.m.

One of the original owners of TutoringZone has filed for personal bankruptcy after taking out personal loans from friends and family to buy out his partner and then defaulting on the loans when his former partner formed a competing company that took market share.

Matthew Hintze, along with his wife, Larina, filed for Chapter 7 protection in U.S. Bankruptcy Court in the Northern District of Florida in Gainesville.

According to the court file, the Hintzes own $603,000 in real estate and personal property and owe $2.7 million to more than 50 creditors. Notices went out to creditors last week that proof of claims are due by March 16, 2013.

The debts include more than $1 million in personal loans from 12 people.

Hintze has said he intends to pay back the investors, although he is under no legal obligation to do so.

“I'm just thankful for the opportunity to move forward. It's a very slow process,” Hintze said on Monday.

Hintze bought out co-founder Ethan Fieldman in June 2011 for $835,000. Fieldman opened Study Edge the next day, and Hintze was unable to pay back personal loans after Study Edge took a share of the college course tutoring business in Gainesville, hurting TutoringZone's revenues.

TutoringZone remains open under new ownership, and Hintze serves as a tutor.

Chris James, a University of Florida finance professor who had loaned $275,000, bought TutoringZone's intellectual property -- including course materials -- to give the business the cash it needed to keep operating over the summer and took ownership in August.

<p>One of the original owners of TutoringZone has filed for personal bankruptcy after taking out personal loans from friends and family to buy out his partner and then defaulting on the loans when his former partner formed a competing company that took market share.</p><p>Matthew Hintze, along with his wife, Larina, filed for Chapter 7 protection in U.S. Bankruptcy Court in the Northern District of Florida in Gainesville.</p><p>According to the court file, the Hintzes own $603,000 in real estate and personal property and owe $2.7 million to more than 50 creditors. Notices went out to creditors last week that proof of claims are due by March 16, 2013.</p><p>The debts include more than $1 million in personal loans from 12 people.</p><p>Hintze has said he intends to pay back the investors, although he is under no legal obligation to do so.</p><p>“I'm just thankful for the opportunity to move forward. It's a very slow process,” Hintze said on Monday.</p><p>Hintze bought out co-founder Ethan Fieldman in June 2011 for $835,000. Fieldman opened Study Edge the next day, and Hintze was unable to pay back personal loans after Study Edge took a share of the college course tutoring business in Gainesville, hurting TutoringZone's revenues.</p><p>TutoringZone remains open under new ownership, and Hintze serves as a tutor.</p><p>Chris James, a University of Florida finance professor who had loaned $275,000, bought TutoringZone's intellectual property -- including course materials -- to give the business the cash it needed to keep operating over the summer and took ownership in August.</p>